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China's DeepSeek claims theoretical cost-profit ratio of 545% per day

DeepSeek announced that it could achieve a theoretical profit margin of 545% based on its V3 and R1 models’ cost of inferencing, as reported on X.
Despite the high profit margin mentioned, DeepSeek disclosed that its actual revenues are lower due to limited monetization and discounts offered during off-peak hours.
DeepSeek has shared key innovations and data about its operations, differing from the proprietary practices of competitors like OpenAI, according to the company.
Investors are questioning the feasibility of profitability for AI start-ups, sparking debate about their business models and returns on investment.

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DeepSeek says it has theoretical profit margins of 545%: an outlier in the world of AI

Chinese artificial intelligence (AI) startup DeepSeek recently stated that its AI models can be highly profitable - albeit with some caveats. The company boasted that its online services have...

18 hours ago·Portugal

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Taipei Times

DeepSeek reveals theoretical 545% margin

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20 hours ago·Taipei, Taiwan

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U.S. News

China's DeepSeek Claims Theoretical Cost-Profit Ratio of 545% Per Day

US News is a recognized leader in college, grad school, hospital, mutual fund, and car rankings. Track elected officials, research health conditions, and find news you can use in politics, business, health, and education.

21 hours ago·New York, United States

China’s DeepSeek claims theoretical cost-profit ratio of 545% per day

DeepSeek said in a GitHub post published on Saturday that assuming the cost of renting one H800 chip is $2 per hour, the total daily inference cost for its V3 and R1 models is $87,072. In contrast, the theoretical daily revenue generated by these models is $562,027, leading to a cost-profit ratio of 545%.

21 hours ago·United Kingdom

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